China is incorporating plans for a national blockchain network into its broader efforts to strengthen the digital economy. The proposal appears in a policy document issued by the Communist Party of China Central Committee and the State Council and published by Xinhua. While the announcement underscores Beijing’s interest in blockchain infrastructure, the restrictions on cryptocurrency transactions in mainland China remain in force.

The policy document, titled “Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,” does not specifically mention Bitcoin or other independent cryptocurrencies. Instead, it outlines a broader technology agenda centered on digitizing manufacturing, establishing a nationwide integrated computing-power network, and expanding the “Eastern Data, Western Computing” initiative. The program aims to move more computing resources and data-storage operations to China’s western regions.

The government’s endorsement of blockchain infrastructure could support the development of enterprise platforms and public-sector digital services. However, it does not authorize mainland residents to trade privately issued cryptocurrencies. China’s state-backed Blockchain-based Service Network (BSN) already supports business and government applications, but cryptocurrencies such as Bitcoin are excluded from its infrastructure.

Whether the new national network will use BSN or operate independently has not been established. The policy document provides no confirmation of a technical relationship between the two. It also cautions against placing excessive emphasis on virtual economic activity at the expense of the real economy or allowing speculative bubbles to form. This suggests Beijing intends to focus on practical blockchain deployment across manufacturing and other productive sectors rather than encouraging unrestricted cryptocurrency speculation.

Other potential blockchain applications include atomic settlement for tokenized assets and compliance systems for financial products operating on-chain. However, these use cases do not clarify the architecture, governance, or participants of China’s proposed network.

Conflux Gains Momentum on China Blockchain Expectations

The announcement prompted renewed investor interest in Conflux, a blockchain project associated with China, according to IBTimes. The CFX token started rising on Saturday morning before surpassing $0.07 at its Sunday high. At 8:00 a.m. EDT on October 11, it traded at approximately $0.066, marking an increase of more than 26% from the previous close.

Conflux is viewed by some market participants as China’s only regulatory-compliant public blockchain. Support for this perception includes its work with state-backed corporations, its approach to token sales that are not permitted under China’s cryptocurrency rules, and its founders’ professional and academic links to state-run Tsinghua University.

Despite the rally, Beijing has not named Conflux as the operator of the proposed national blockchain system. The policy document also does not state that CFX will be used as the network’s native token. Consequently, the price movement appears to reflect speculation about a potential benefit for Conflux rather than confirmation that the government has selected the project.

China-related policy developments can generate rapid buying interest in cryptocurrencies associated with the country. Yet a stronger long-term investment case for Conflux would require evidence of its participation in official pilot projects, technical standards, or operational government infrastructure. The latest announcement does not confirm any such involvement.

CFX was trading near $0.066 at 8:00 a.m. EDT on October 11, following its earlier move above $0.07. Whether the rally continues may depend on how investors respond once the immediate excitement surrounding the policy announcement subsides.

For now, Beijing’s plans indicate that blockchain remains a component of China’s digital-economy strategy. However, key details concerning implementation, governance, technical standards, and network participants remain undisclosed. Until authorities provide further clarification, any claim that Conflux has secured a position in the national blockchain network remains speculative.